Budget 2023: the lowdown

Main Points from the 2023 Budget


6/1/20232 min read

blue and white happy birthday print stone
blue and white happy birthday print stone

The UK Budget 2023: What You Need to Know

The UK government has unveiled its latest budget, which sets out its plans for spending and taxation for the next fiscal year. The budget has been described as a "balanced" one, aiming to support the economic recovery from the pandemic while also addressing some of the long-term challenges facing the country.

Here are some of the key points from the budget:

  • The government will increase public spending by 3.8% in real terms, the highest growth rate since 2004. This will include more funding for health, education, defence and infrastructure.

  • The government will also raise some taxes, mainly on businesses and high earners. The corporation tax rate will rise from 19% to 25% by 2025, while the income tax thresholds for the basic and higher rates will be frozen until 2026. This means that more people will pay higher taxes as their incomes rise with inflation.

  • The government will borrow £234 billion in 2023-24, equivalent to 8.5% of GDP. This is lower than the £394 billion borrowed in 2020-21, but still higher than before the pandemic. The government expects to reduce the deficit gradually over the next five years, but not to balance the budget by 2030.

  • The government will introduce some new measures to boost growth and productivity, such as a "super deduction" for business investment, a new visa scheme for highly skilled workers, and a "levelling up" fund for regional development.

  • The government will also announce some policies to tackle climate change and environmental issues, such as a new green bond for retail investors, a carbon border tax on imports from countries with lower emissions standards, and a ban on sales of new petrol and diesel cars by 2030.

The budget has received mixed reactions from different groups and sectors. Some have praised the government for its spending plans and its commitment to green initiatives, while others have criticised the government for its tax hikes and its lack of ambition on social issues such as poverty and inequality.

What do you think of the budget? Do you agree or disagree with the government's priorities and choices? Let us know in the comments below.